While industries brace for impending economic gloom, online retailers like Brisbane-based dStore are proving more resilient to recession.
Acquired in 1999 by e-business platform developer HotShed, dStore is reporting an increase in both customers and sales despite an economic rut.
Reports from December 2008 show a spike in Christmas sales thanks to cash-bonus splurging, with average spending increasing from $88 to $113.
Four-months on, CEO Andrew Cooper says profits are still up year-on-year, and regular web shoppers are continuing to spend more.
“We predicted a 20 to 30 percent increase from last year, and in reality it’s more like 10 to 15 percent,” he says.
“So we are growing, but not as much.”
Cooper says dStore is always acquiring new customers, but it has been noticing some interesting trends over the recent months.
“New customers now are not spending as much as new customers from one-year ago,” he says.
“However, our regulars are spending more, which tells us that people are shopping with trusted brands.”
Cooper insists online retailing is not recession proof, but is more resilient to the financial crisis and weakening economy.
“If we did go into recession, we are glad to be online,” he says.
While some companies are culling workers and instigating pay-cuts, dStore is employing different strategies to ride out the downturn.
“We are not spending as much on marketing. We’re trying to take care of our existing customers,” Cooper says.
Cooper’s expectations are that the next 18 months will see difficult times.
“It will be interesting to see what happens,” he says.